Tsk. This idea of stiffing the banks could spread ...Ever since Argentina defaulted on debt in 2001, the Philippines has been fending off worries it may do the same.
To counter it, this highly indebted nation is working to strengthen its balance sheet. Yet rather than viewing Argentina as an example of what not to do, should Asia's 12th biggest economy see it as a role model?
As blasphemous as that sounds, Philippine Senator Manuel Villar thinks the answer is a resounding yes. He wants a repudiation of certain government debt issues, and recently even filed a bill to create a "Council for Debt Relief."
Investors can relax; the plan was quickly rejected. Yet with Argentina growing 9 percent, it may be tempting for some Filipino lawmakers to follow its lead. That would be a mistake for one of Asia's most fragile and geo-politically important economies. The costs of blowing off investors could far outweigh the benefits.
Taiwan News
Printer-friendly format
Email this thread to a friend
Bookmark this thread
(1000+ posts)
Send PM |
Profile |
Ignore